## Facts

- Harry G. Hanson, a skilled pressman, worked for Central Show Printing Co. for many years.
- In 1959, Hanson had an opportunity for steadier work with another local printing company and was concerned about seasonal slowdowns at Central Show.
- Central Show’s president gave Hanson a signed letter stating: “Starting today Oct. 21, I will guarantee you 40 hours work per week thru out the entire year each year untill you retire of your own choosing.”
- Hanson stayed with Central Show and continued working until October 21, 1961, when he was discharged without cause.
- Hanson sued for breach of contract, seeking past and future damages based on 40 hours per week at his hourly rate through retirement.
- After Hanson presented his evidence, the trial court directed a verdict for the employer; Hanson appealed.

## Issues

1. Whether an employer’s written promise to guarantee 40 hours per week “until you retire of your own choosing” creates an enforceable permanent/lifetime employment contract.
2. Whether an employee’s decision to forgo another job opportunity and remain employed constitutes additional consideration sufficient to make such a promise enforceable beyond at-will employment.

## Decision

- The Iowa Supreme Court affirmed the directed verdict for the employer.
- The court held the letter did not create a binding contract for employment until retirement.
- The court treated the arrangement as an indefinite hiring terminable at the will of either party because there was no definite duration and no additional consideration beyond the employee’s services.
- The court rejected the argument that declining another job opportunity supplied the required additional consideration.

## Legal Principles

- Absent a definite duration or additional consideration beyond the services to be performed, a contract described as “permanent,” “for life,” “as long as the employee chooses,” or “until retirement” is treated as an indefinite hiring terminable at will by either party.
- Continued employment and performance of job duties are not “additional consideration” that converts an indefinite employment relationship into a permanent-employment contract.
- An employee’s choice to remain with an employer, including foregoing other job opportunities, is generally insufficient by itself to establish the independent consideration required to enforce a purported permanent-employment promise.

## Conclusion

The court held that a written assurance of 40 hours of work per week “until retirement,” without a fixed term or separate consideration beyond the employee’s labor, is not enforceable as a retirement-length contract and remains at-will employment.


Hanson v. Central Show Printing Co., Inc., 130 N.W.2d 654 (Iowa 1964)